DISCLAIMER: Departmental notices are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on either the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein. This document does not meet the definition of a "statement" required to be published in the Indiana Register under IC 4-22-2-7.

1) The statewide average retail price per gallon of gasoline (excluding the Indiana gasoline tax, the federal gasoline tax, and the Indiana gross retail tax); multiplied by

2) The state gross retail tax rate (7%); multiplied by

3) Eighty percent (80%); rounded to

4) The nearest one-tenth of one cent ($0.001)

Step 2

1) Determine the lesser of the results in Step 1 or

2) The product of:

(i) The prepayment rate in effect on the day immediately preceding the day on which the prepayment rate is redetermined; multiplied by

(ii) One hundred twenty-five percent (125%); rounded to

3) The nearest one-tenth of one cent ($0.001)

Using the most recent retail price of gasoline available (as required by IC 6-2.5-7-14(b)), the department has determined the statewide average retail price per gallon of gasoline to be three dollars sixteen and five-tenths cents ($3.165) for the month of February 2013. The data is derived from:

www.IndianaGasPrices.com

Based on the provisions of Step 1 and Step 2, the calculations are as follows:

Step 1

Statewide average retail price per gallon:

3.165

Multiplied by the state retail tax:

×.07

0.22155

Multiplied by 80%:

× 0.8

0.17724

Rounded to the nearest one-tenth of one cent:

0.177

Step 2

Previous 6-month prepayment rate:

0.183

Multiplied by 125%:

× 1.25

0.22875

Rounded to the nearest $0.001:

0.229

Prepayment Rate

Based on the previous calculations, Step 1 will be used to determine the prepayment rate. The prepayment rate of sales tax on gasoline for the 6-month period beginning July 1, 2013, is seventeen and seven-tenths cents ($0.177) per gallon.

_________________________

Michael J. Alley

Commissioner

Indiana Department of State Revenue

The prepayment rates for periods beginning July 1, 1994, are established below: